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Market OutlookNovember 7, 2012
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Market OutlookNovember 7, 2012
Dealers Diary
Indian markets are expected to open flat to negative today tracing negative trades
in the SGX Nifty and most of the Asian indices. Most of the Asian bourses have
declined as exit polls suggest that US presidential elections results remain too closeto call.
U.S markets moved mostly higher during the trading session on Tuesday, adding to
the gains posted in the previous session. The strength on Wall Street came even as
traders express continued uncertainty about the outcome of the presidential race
between President Barack Obama and Republican challenger Mitt Romney. Most of
the European bourses ended the trading session on Tuesday in positive territory,
rebounding from the weakness of the prior session. The U.S. presidential election
overshadowed some weaker than expected economic reports in Europe, like the
larger than expected decline in German factory orders.
Meanwhile, Indian markets swung between gains and losses before endingmodestly higher on Tuesday. Stocks saw some late-session boost after reports
suggested that the government is mulling options to defer some spending to the
next financial year to keep its rising fiscal deficit under control.
Markets Today
The trend deciding level for the day is 18,791 / 5,716 levels. If NIFTY trades above
this level during the first half-an-hour of trade then we may witness a further rally
up to 18,855 18,893 / 5,739 5,753 levels. However, if NIFTY trades below
18,791 / 5,716 levels for the first half-an-hour of trade then it may correct up to
18,753 18,689 / 5,702 5,679 levels.
SENSEX 18,689 18,753 18,791 18,855 18,893NIFTY 5,679 5,702 5,716 5,739 5,753
News Analysis
SAILs production to be lower on closure of an iron ore mine BHEL signs agreement with Shell for gas turbine supply USL-Diageo deal likely this week. 2QFY2013 Result Review: Bosch, Hindalco, Canara Bank, ABB, Motherson
Sumi, Andhra Bank, Britannia, Central Bank, Dena Bank, ITNL, GIPCL, Relaxo
Footwear, Cravatex
2QFY2013 Result Preview: Bharti Airtel, Tata Motors, NMDCRefer detailed news analysis on the following page
Net Inflows (November 05, 2012)
FII 1,363 950 413 2,248 55,100
MFs 316 406 (89) (840) (10,290)
FII Derivatives (November 06, 2012)
Index Futures 696 851 (155) 11,097
Stock Futures 914 935 (21) 29,011
Gainers / Losers
J&K Bank 1,310 7.8 Voltas 114 (2.9)
HDIL 106 5.9 JUBL FOOD 1,282 (2.4)
Eicher Motors 2,542 5.7 IDFC 163 (2.3)
Adani Ports 135 5.6 Astrazeneca Phar 1,521 (2.1)
Apollo Hosp 821 4.9 Hindalco Inds 113 (1.9)
BSE Sensex 0.3 54.5 18,817
Nifty 0.4 20.2 5,724
MID CAP 0.6 36.9 6,665
SMALL CAP 0.4 25.0 7,082
BSE HC 1.0 73.6 7,817
BSE PSU 0.5 32.7 7,250
BANKEX 0.6 78.8 13,256
AUTO (0.5) (54.1) 10,586
METAL 0.0 1.4 10,267
OIL & GAS 0.2 12.9 8,364
BSE IT (0.0) (0.5) 5,779
Dow Jones 1.0 133.2 13,246NASDAQ 0.4 12.3 3,012
FTSE 0.8 45.8 5,885
Nikkei (0.4) (32.3) 8,975
Hang Seng (0.3) (62.0) 21,944
Straits Times (0.4) (12.4) 3,019
Shanghai Com (0.4) (8.0) 2,106
INFY 0.5 0.2 $44.0
WIT (0.9) (0.1) $8.5IBN 1.1 0.4 $40.3
HDB 0.8 0.3 $38.2
Advances 1,519 791
Declines 1,318 690
Unchanged 141 94
BSE 2,269
NSE 9,455
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Market OutlookNovember 7, 2012
SAILs production to be lower on closure of an iron ore mine
Media reports suggest that SAIL is expected to stop mining iron ore in Odisha state
on account of delay in getting environment and forest clearances. Its 4.5mn tonne
iron ore mines two year extension will expire on November 10 post which SAIL will
need a fresh clearance in order to operate the mine. The closure of the iron oremine will affect its 1.8mn tonne Durgapur steel plant (SAILs production capacity-
13.5mn tonne). The stoppage could also delay the companys US$13bn capex
plan to increase steelmaking capacity to 24mn tonne annually by FY2015,
improve products and develop mines. We await further clarity from the
management post its results on November 8, 2012. Until then,
BHEL signs agreement with Shell for gas turbine supply
Bharat Heavy Electricals Ltd (BHEL) has signed an agreement with Shell, aNetherlands-based global energy and petrochemicals giant, for supply of gas
turbines and generators over the next five years. Under the Enterprise Framework
Agreement (EFA), BHEL will supply Gas Turbine Generator (GTG) packages to
Shell in select locations including Asia-Pacific, Middle-East, Central Asia, Eastern
Europe and Africa,The agreement covers supply ofGTG packages in three
categories Frame 5 (26 Mw), Frame 6E (42 Mw) and Frame 9E (126 Mw) for
power generation and includes installation and commissioning services.This
agreement will give BHEL an opportunity to extend its GTG business in untapped
geographies globally.
USL-Diageo deal likely this week.
As per media reports Britain's Diageo Plc is set to pick up a 51% stake USL this
week in a transaction worth around US $2 billion. The deal would involve the
direct purchase of promoters holding, the issue of fresh shares and an open offer
to buy stock from public shareholders. Both USL and Diageo had earlier confirmed
that they are in talks for a deal. USL is expected to declare its 2QFY2013 on Friday
and announcement of the deal could coincide with the same.
Result Review
Bosch (CMP:`8,888/ TP: - / Upside: -)
Bosch (BOS) reported poor performance for 3QCY2012 largely due sequential
decline in operating margins (down 182bp) led by sequential decline in the top-
line. Top-line posted a sluggish growth of 3% yoy (down 5.6% qoq) to `2,052cr,
broadly in-line with estimates, on account of weakness in medium and heavy
commercial vehicle (MHCV) and tractor sales. The automotive segment posted a
subdued growth of 1.6% yoy (down 5.7% qoq) due to marginal decline in diesel
system sales and 17.6% yoy decline in exports revenue. EBITDA margin declined182bp sequentially to 13.3% primarily due to increase in employee and other
expenditure as a percentage of sales. However on a yoy basis, margins contracted
steeply by 600bp due to INR depreciation which resulted in a 342bp increase in
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Market OutlookNovember 7, 2012
raw-material cost as a percentage of sales. Further, other expenditure too
witnessed a 170bp yoy expansion during the quarter. As a result, operating profit
declined 29% yoy (17% qoq) to`273cr. Net profit for the quarter stood at `203cr,
down 29.6% yoy and 18% qoq as negative impact of higher depreciation expense
was mitigated by higher other income and lower tax rate. We revise downwards
our earnings estimates for BOS by 5%/4% for CY2012/13E to factor in the pooroperating performance during the quarter. At the CMP of `8,888, the stock is
trading at 21.2x CY2013E earnings which we believe is on the higher side.
CY2012E 8,776 16.6 1,042331.9 18.7 26.7 5.0 17.0 2.7
CY2013E 10,276 18.0 1,312417.7 19.5 21.2 4.1 13.0 2.2
Hindalco (CMP:`113/ TP: -/ Upside :-)
Hindalcos 2QFY2013 EBITDA was better than our estimate on account of better-
than-expected profitability from Copper segment; however, its PAT was in line with
our estimates due to lower-than-expected interest expenses. Hindalcos net sales
declined 1.7% yoy to `6,115cr (below our estimate of `6,423cr). In aluminium
segment, alumina production fell by 1.3% yoy to 328kt whereas aluminium metal
production declined by 10.7% yoy to 128kt. The downstream sales stood at 62kt.
Aluminium segment net sales declined by 4.9% yoy to`2,105cr due to lower LME
aluminium prices and operational disturbances at both the smelters of the
company. In copper segment, copper cathode production increased by 4.6% yoy
to 78kt whereas CCR production grew by 8.9% yoy to 37kt. Copper segment netsales remained flat yoy at`4,066cr.
On the operating front, aluminium segment EBIT decreased by 60.4% yoy to
`170cr due to decrease in realizations coupled with increase in fuel and power
costs. Copper segment EBIT however improved by 41.3% yoy to `209cr (better
than our expectation). Overall, Hindalcos EBITDA declined by 23.0% yoy to
`515cr and EBITDA margin slipped 233bp yoy to 8.4% during 2QFY2013.
However, Interest expenses declined substantially by 58.7% yoy to `28cr due to
prepayment of high interest bearing debt (~`6,000cr) by the company. The
company has raised equivalent amount of debt (via bond issue) which will be used
to fund expansion projects and hence, it did not flow through in the 2QFY2012income statement. Other income was also lower by 24.8% yoy to `132cr.
Consequently, net profit declined by 28.6% yoy to`359cr (in line with our estimate
of`364cr). The company has reported no changes in the status of its projects from
its previous update of August 2012.
Hindalcos fully-owned subsidiary Novelis reported subdued 2QFY2013 results. Its
net sales declined 15.2% yoy to $2,41mn due to decline in realizations (aluminium
prices were down 20% yoy). Shipments were flat yoy at 719kt during the quarter.
EBITDA also fell by 7.9% to $277mn due to higher employee and project start up
costs associated with its expansion. The companys PAT however, fell substantially
by 59.2% yoy to $49mn mainly due to higher tax provisions of $37mn, comparedto a tax benefit of $7mn in 2QFY2012. During October, Novelis opened Asia's
largest fully integrated recycling and casting facility in South Korea. Once fully
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Market OutlookNovember 7, 2012
commissioned, the facility will have an annual capacity of approx. 265kt once it
ramps up fully.
FY2013E 84,855 8.7 2,529 13.2 7.8 8.5 0.6 7.4 0.6FY2014E 92,446 9.3 3,107 16.2 8.9 6.9 0.6 6.1 0.6
Canara Bank- (CMP:`420/ TP:`449/ Upside: 6.9%)
During 2QFY2013, Canara Bank posted disappointing performance on the
operating front, with a decline of 8.1% and 20.1% yoy in operating income and
operating profit to`2,565cr and`1,282cr, respectively. On the earnings front, the
bank witnessed de-growth of 22.4% to `661cr. On the asset quality front, on an
absolute basis, Gross and Net NPA levels increased by 24.7% and 21.6% qoq,respectively. Gross and Net NPA ratios were higher by 60bps and 46bps during
the quarter to 2.58% and 2.12%, respectively. At CMP, the stock trades at relatively
expensive valuations of 0.8x FY2014 ABV.
FY2013E 10,905 2.1 3,317 74.9 499.0 0.8 15.1 5.7 0.9
FY2014E 12,783 2.2 3,771 85.1 560.9 0.9 15.3 5.0 0.8
ABB (CMP:`722/TP:`593/Downside: 22 %)
For 3QCY2012, ABB India (ABB) posted subdued top-line growth of 3.7% yoy to
`1,809cr, below our expectations, due to project delays in process automation and
power segment. ABBs margin came in flat at 3.7% on account of cost overruns
and impact of forex loss of`30cr included in other expenses. Consequently, ABBs
bottom-line declined by 3.5% yoy to`21cr.
CY2012E 8,760 6.2 306 14.5 11.6 50.0 5.5 27.6 1.7
CY2013E 10,023 8.7 524 24.7 17.6 29.2 4.8 17.1 1.5
Motherson Sumi Systems (CMP:`156/ TP: -/ Upside: -)
Motherson Sumi Systems (MSS) registered a 7.8% yoy decline in consolidated
revenues on a sequential basis to`5,891cr, which was below our estimates, due to
sluggish revenue growth in standalone operations (down 9.3% qoq) and 10.1%
qoq decline in revenues at Samvardhana Motherson Peguform (SMP). On a yoy
basis, top-line grew by 151.9% primarily due to consolidation of Peguform
operations which contributed `2,954cr to the top-line. Samvardhana Motherson
Reflectec (SMR) revenues for the quarter reported a strong growth of 17.3% (EUR
terms) and 25.1% yoy (INR terms) to`1,583cr led by pick-up in order execution at
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Market OutlookNovember 7, 2012
the new plants in Hungary. The top-line growth on a yoy basis was strong even
after adjusting for Peguform operations and came in at 25.6% yoy. However it
declined 5.3% on a sequential basis, led by decline in domestic revenues at the
standalone level due to lock out at Maruti Suzukis Manesar plant.
On the operating front, consolidated margins stood flat sequentially (down 174bpyoy) at 7.1% led by stable performance at SMR (EBITDA margin at 5%). The
standalone (down 150bp to 15.1%) and SMP (down 50bp qoq to 3.7%) operations
however witnessed margin contraction during the quarter. On a yoy basis though,
SMR reported substantial improvement in margins due to improving utilization
levels at the new plants. While reported net profit stood at`138cr as against`24cr
in 2QFY2012; adjusted for the forex gains, net profit declined 29% yoy to `70cr.
During 2QFY2013, Peguform and SMR turned profitable and posted profits of
`8cr (loss of `67cr in 1QFY2013) and `6cr (loss of `2cr in 1QFY2013)
respectively. At `156, the stock is trading at 14.8x FY2014 earnings.
We shall revise our estimates post earnings
conference call with the management which is scheduled today.
FY2013E 24,285 6.7 473 8.0 22.9 19.4 4.1 7.9 0.5
FY2014E 27,317 7.2 622 10.6 24.7 14.8 3.3 6.5 0.5
Andhra Bank- (CMP:`105/ TP: -/ Upside: -)
During 2QFY2013, Andhra Bank posted a modest set of numbers with net profit
growing by 3.0% yoy to`326cr. The NII income was weak, de-growing by 6.0%
yoy. However, non interest income growth was strong at 23.4% yoy to `219cr. The
provisioning expenses declined by 46.5% yoy to `139cr. The gross NPA of the
bank stood at 3.48%, while the net NPA stood at 2.2%. The PCR ratio of the bank
declined by 720bp to 53.2%.
FY2013E 4,929 3.1 1,327 23.7 144.2 1.0 16.6 4.5 0.7
FY2014E 5,633 3.1 1,373 24.5 162.1 0.9 15.3 4.4 0.7
Britannia Industries (CMP:`480/TP:`584/Upside:-22%)
For 2QFY2013, Britannia Industries posted an 8.4% yoy growth in top-line to
`1,403cr, which was below our estimates. The OPM was down by 52bp yoy due to
increase in cost of raw materials such as wheat and sugar, as well as higher fuel
costs. The companys advertising costs too went up by 61bp on a yoy basis. The
bottom-line rose by 21.6% yoy to`46cr, aided by higher other income at`26cr (vs
`11cr in 2QFY2012).
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FY2013E 5,835 5.7 247 20.7 43.1 23.2 9.1 15.9 0.9
FY2014E 6,824 5.9 303 25.4 41.9 18.9 7.0 13.0 0.8
Central Bank- (CMP:`73/ TP: -/ Upside: -)
During 2QFY2013, Central Bank reported a decent set of numbers. The net profit
was up by 35.1% yoy on a low base. The banks tier-1 ratio is on the lower side at
just above 7%. Hence the bank has asked the GOI for capital to the tune of
`2,500cr. The slippages were high at `1,783cr but on expected lines. The bank
has one of the highest restructured book as a proportion of its advances within the
banking industry.
FY2013E 7,095 2.5 1,299 15.6 94.2 0.5 12.2 4.6 0.8
FY2014E 8,102 2.7 1,698 21.0 107.0 0.6 14.7 3.4 0.7
Dena Bank- (CMP:`111/ TP: -/ Upside: -)
During 2QFY2013, Dena Bank posted healthy performance on the operating
front, with a growth of 15.9% and 24.2% yoy in operating income and operating
profit to `728cr and `437cr, respectively. On the earnings front, the bank
witnessed healthy growth of 23.8% to`240cr.
Advances for the bank grew at a strong pace of 37.8% yoy, while growth in
deposits came in at 30.1% yoy. The management expects credit and deposit
growth of ~18% and 17%, yoy respectively for FY2013E. CASA ratio came in
sequentially higher by ~100bp to 31.9%. NIMs for the bank declined sequentially
by 20bp to 2.86%. On the asset quality front, on an absolute basis, Gross and Net
NPA levels increased by 8.8% and 20.7% qoq, respectively. Slippages came in
higher sequentially at `288cr compared to `192cr in 1QFY2013. Incremental
slippages were granular in nature, except for`90cr coming in from two accounts.
Gross and Net NPA ratios were higher by 17bps and 21bps during the quarter to
1.97% and 1.22%, respectively. Additionally the bank restructured advances worth
`300cr during the quarter compared to `750cr in 1QFY2013, thereby taking its
outstanding restructured book to `4,500cr. At CMP, the stock trades at relatively
expensive valuations of 0.7x FY2014 ABV.
FY2013E 3,147 2.8 869 24.8 143.4 0.9 18.7 4.4 0.8
FY2014E 3,495 2.9 853 24.4 163.7 0.8 15.9 4.5 0.7
ITNL (CMP:`189 / TP:`225/ Upside: 19%)
For 2QFY2013, on a consolidated basis, IL&FS Transportation Networks (ITNL)
posted mixed set of numbers with modest growth on the top-line front however
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Market OutlookNovember 7, 2012
bottomline was ahead of our estimate mainly due to better-than-expected
performance at the operating level. The companys revenue for the quarter came
in at`1,370cr (`1,256cr), registering 9.1% yoy growth, which was lower than our
estimate of`1,507cr. EBITDA margins for the quarter stood at 33.0% vs. 28.4% in
2QFY2013, an increase of 462bp and 351bp on yoy and qoq basis respectively,
against our estimate of 27.1%. This was mainly on account of higher revenuecontribution from the relatively high-margin toll/annuity segment during the
quarter. ITNLs interest cost grew by65.6% yoy / 11.3% qoq to`280cr in 2QFY13,
ahead of our estimate of `265cr. On the earnings front, ITNL reported flat yoy
earnings of`116cr in 2QFY13 which was higher than our estimate of `98cr. This
was mainly on back better-than-expected performance at the operating level.
FY2013E 6,564 27.2 510 26.3 17.0 7.2 2.7 6,564 27.2
FY2014E 7,054 27.4 564 29.0 16.3 6.5 2.7 7,054 27.4
GIPCL (CMP:`68/TP:`77/Upside: 13 %)
For 2QFY2013, GIPCL reported a robust 20% yoy growth in its top-line to `360cr,
in line with our expectations. OPM expanded by 456bp yoy to 36.2%. The
company also benefited from an exceptional gain of `60cr,`40 due to realization
of contractual claims and`20cr due to energy billing claims being settled during
the quarter. However, the company reported a loss of`28cr on account of higher
tax (`94cr) booked in the quarter.
FY2013E 1,557 29.3 163 10.8 10.8 6.2 0.6 3.9 1.1
FY2014E 1,573 28.7 166 11.0 10.2 6.1 0.6 3.4 1.0
Relaxo Footwear (CMP `803 / TP -`932 / Upside: 16%)
Relaxo reported lower than expected numbers for 2QFY2013. The revenue for the
quarter stood at`242cr marginally lower than our expectation of `248cr, while it
grew by 21.6% yoy from `199cr in 2QFY2012. The EBITDA margin witnessed anexpansion of 204bp yoy to 9.9% during the quarter; however, it was lower than
our expectation of 12.5%. Operating margin contracted by 221bp on a qoq basis
from 12.1% in 1QFY2013 on account of higher other expenses as a percentage of
net sales (mainly advertisement expense). Subsequently, the profit for the quarter
grew by 139.4% yoy at`10cr (on a lower base of`4cr for 2QFY2012), which was
32.9% lower than our estimate of`15cr.
However, we remain positive on the company with the growth triggers in place,
which includes 1) capacity expansion plan, 2) store expansion, 3) improved sales
mix and 4) brand revamping. At `803, the stock is trading at 12.0x FY2014E
earnings.
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FY2012E 1,019 11.0 56 47.0 28.2 17.1 4.2 9.9 1.1
FY2013E 1,208 13.0 80 66.6 30.0 12.0 3.2 7.1 0.9
Cravatex (CMP:`450/ TP:`545/ Upside: 21%)
Cravatex reported a marginally higher top-line of `56cr yoy on a consolidated
basis, vis--vis our estimate of`69cr. The contribution from the domestic sales has
reduced from 98% in 2QFY2012 to 88% in 2QFY2013 with subsequent increase
in international segments share. On the operating front the EBITDA grew by 9%
yoy to`5.4cr. Other expenses cost reduced by 400bps which was offset by a total
355bps increase in raw material and employee cost, thus leading to expansion of
EBITDA margin by 46 bps to 9.6%. However on the segmental front, the EBIT
margin for the domestic segment contracted by 105 bps yoy while the international
segment reported a margin of 8.2% as compared to a loss in the same quarter
previous year. The company reported a bottom-line of`3.3cr vis--vis our estimate
of `2.1cr, low by 5.9% yoy.
FY2013E 280 5.8 10 38 19.4 11.9 2.8 8.9 0.5
FY2014E 320 5.8 12 45 19.7 9.9 2.2 7.8 0.4
Result Preview
Bharti Airtel (CMP:`273 / TP: - / Upside: -)
Bharti Airtel is slated to announce its 2QFY2013 results today. We expect the
company to record revenue of `19,382cr, almost flat qoq. In domestic mobile
servies, MOU is expected to decline by 2.0% to 424min and almost flat ARPM at
`0.43/min. Africa business is expected to post ~4% qoq growth in revenues.
Consolidated EBITDA margin of the company is expected to improve by 71bp qoq
to 30.9%. EBITDA margin of Africa business is expected to remain flat qoq at
~26%. PAT is expected to be at `862cr.
FY2013E 79,147 31.3 3,771 9.9 7.0 27.5 1.9 6.5 2.0
FY2014E 86,745 32.5 5,721 15.1 9.7 18.1 1.8 5.2 1.7
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Market OutlookNovember 7, 2012
Tata Motors (CMP:`267/ TP:`316/ Upside: 19%)
Tata Motors (TTMT) will be announcing its 2QFY2013 results today. On a
consolidated basis, we expect the companys top-line to grow by a robust ~25%
yoy (3.7% qoq) to`44,781cr driven by an impressive revenue growth of 37.4% yoy
in Jaguar and Land Rover (17.4% yoy in GBP terms and 18.2% yoy due todepreciation of INR versus GBP). On the operating front, EBITDA margin is
expected to expand marginally by 40bp yoy to 12.9%. As a result, the bottom line
is expected to grow sharply by ~38% yoy`2,591cr. At the CMP of`267, the stock
is trading at 5.9x FY2014E earnings.
FY2013E 195,096 12.8 12,370 39.0 32.6 6.8 2.0 3.8 0.5
FY2014E 219,428 13.0 14,253 44.9 28.8 5.9 1.5 3.2 0.4
NMDC (CMP:`186, TP:`214 Upside: 15%)
NMDC is slated to announce its 2QFY2013 results today. We expect the
companys top line to decrease by 3.7% yoy to`2,950cr on account of decrease in
sales volumes. On the operating front, EBITDA margin is expected to decrease by
535bp yoy to 74.1%. The bottom line is expected to decrease by 6.4% yoy to
`1,838cr.
FY2013E 12,934 79.4 8,349 21.1 29.6 8.8 2.3 4.8 3.8
FY2014E 14,266 80.1 9,267 23.4 26.5 8.0 1.9 4.0 3.2
Quarterly Bloomberg Brokers Consensus Estimate
Net sales 19,533 17,270 13 19,350 1
EBITDA 5,872 5,815 1 6,009 (2)EBITDA margin (%) 30.1 33.7 31.1
Net profit 719 1,023 (30) 775 (7)
Net sales 2,870 3,062 (6) 2,838 1
EBITDA 2,307 2,435 (5) 2,302 0
EBITDA margin (%) 80.4 79.5 81.1
Net profit 1,861 1,963 (5) 1,906 (2)
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Net sales 43,917 35,938 22 43,171 2
EBITDA 5,599 2,222 152 5,575 0
EBITDA margin (%) 12.7 6.2 12.9
Net profit 2,382 1,911 25 2,273 5
Net sales 3,219 3,095 4 2,941 9
EBITDA 274 331 (17) 241 14
EBITDA margin (%) 8.5 10.7 8.2
Net profit 91 154 (41) 67 35
Net sales 1,204 1,070 13 1,241 (3)
EBITDA 211 176 20 232 (9)
EBITDA margin (%) 17.5 16.4 18.7
Net profit 157 129 22 181 (13)
Net sales 20,989 22,616 (7) 20,084 5
EBITDA 11,712 14,469 (19) 9,930 18
EBITDA margin (%) 55.8 64.0 49.4
Net profit 6,144 8,642 (29) 6,078 1
Net sales 2,668 2,023 32 3,174 (16)
EBITDA 406 174 133 511 (21)
EBITDA margin (%) 15.2 8.6 16.1
Net profit 347 (461) - (584) -
Net sales 5,243 4,689 12 4,878 7
EBITDA 1,569 1,357 16 1,595 (2)
EBITDA margin (%) 29.9 28.9 32.7
Net profit 158 323 (51) 192 (18)
Net sales 11,096 10,837 2 10,641 4
EBITDA 1,412 1,327 6 1,515 (7)EBITDA margin (%) 12.7 12.2 14.2
Net profit 771 495 56 696 11
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Net sales 2,603 1,895 37 2,658 (2)
EBITDA 1,079 784 38 1,242 (13)
EBITDA margin (%) 41.5 41.4 46.7
Net profit 773 707 9 921 (16)
Economic and Political News
Cancel mines allotted to Chhattisgarh, Odisha govt cos: IMG RBI may ease monetary policy in January, says Duvvuri Subbarao Government will defer spending to rein in fiscal deficit, says finance ministry Real Estate Regulation Bill in Winter session: Maken
Corporate News
EGoM to decide price band for Nalco stake sale Lenders may take legal action against Deccan Chronicle Holdings after audit KFA will not fly if it doesn't get capital by Nov 30: SBI Tata Steel to contest`6,000cr fine imposed by Odisha govtSource: Economic Times, Business Standard, Business Line, Financial Express, Mint
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7/31/2019 Market Outlook 7-11-12
12/21
Date Company
November 07, 2012 Bharti Airtel, NMDC, Tata Motors, Cadila Healthcare, Indraprasth Gas, GSPL, UCO Bank
November 08, 2012ONGC, Sun Pharma, SAIL, Ranbaxy, Rcom, Cummins India, Ashok Leyland, Areva, Monnet Ispat, Page Industries, PTCIndia, Nagarjuna Const., Prakash Industries, Finolex Cables, Goodyear
November 09, 2012Coal India, St Bk of India, IOC, Jindal Steel, Tata Steel, BPCL, Power Fin.Corpn., GSK Pharma, United Spirits, HPCL,Essar Oil, Sun TV Network, Tata Chemicals, Suzlon Energy, Corporation Bank, MOIL, HDIL, Aurobindo Pharma,
CESC, Sadbhav Engg., Punj Lloyd, Anant Raj, Graphite India, Orchid Chemicals, Patel Engg., Subros, Disa
November 10, 2012 Unitech, TVS Srichakra, Abbott India, S. Kumars Nationwide
November 11, 2012
November 12, 2012 DLF, Nestle, Jaiprakash Asso., GMR Infra., Bhushan Steel, Simplex Infra, SpiceJet
November 13, 2012
November 14, 2012 Madhucon Proj
November 15, 2012 Consolidated Co
Source: Bloomberg, Angel Research
Result Calendar
Global economic events release calendar
Date Time Country Event Description Unit Period Bloomberg Data
Last Reported Estimated
November 06, 2012 2:25PM Germany PMI Services Value Oct F 48.40 49.30
3:00PM UK Industrial Production (YoY) % Change Sep (2.60) (1.60)
November 08, 2012 5:30PM UK BOE Announces rates % Ratio Nov 8 0.50 0.50
6:15PM Euro Zone ECB announces interest rates % Nov 8 0.75 0.75
7:00PM US Initial Jobless claims Thousands Nov 3 363.00 366.00
November 09, 2012 7:00AM China Consumer Price Index (YoY) % Change Oct 1.90 1.90
11:00AM China Industrial Production (YoY) % Change Oct 9.20 9.40
November 10, 2012 5:29PM China Exports YoY% % Change Oct 9.90 10.00
November 12, 2012 11:00AM India Industrial Production YoY % Change Sep 2.70 2.90
November 13, 2012 3:00PM UK CPI (YoY) % Change Oct 2.20 --
November 14, 2012 12:00PM India Monthly Wholesale Prices YoY% % Change Oct 7.81 8.00
3:00PM UK Jobless claims change % Change Oct (4.00) --
7:00PM US Producer Price Index (mom) % Change Oct 1.10 0.10
November 15, 2012 12:30PM Germany GDP nsa (YoY) % Change 3Q P 0.50 --
3:30PM Euro Zone Euro-Zone CPI (YoY) % Oct 2.60 --
3:30PM Euro Zone Euro-Zone GDP s.a. (QoQ) % Change 3Q A (0.20) --
7:00PM US Consumer price index (mom) % Change Oct 0.60 0.10
November 16, 2012 7:45PM US Industrial Production % Oct 0.41 0.20November 19, 2012 8:30PM US Existing home sales Millions Oct 4.75 --
November 20, 2012 7:00PM US Housing Starts Thousands Oct 872.00 --
7:00PM US Building permits Thousands Oct 890.00 --
November 22, 2012 2:00PM Germany PMI Manufacturing Value Nov A 46.00 --
8:30PM Euro Zone Euro-Zone Consumer Confidence Value Nov A (25.70) --
November 27, 2012 3:00PM UK GDP (YoY) % Change 3Q P -- --
8:30PM US Consumer Confidence S.A./ 1985=100 Nov 72.20 --
November 28, 2012 8:30PM US New home sales Thousands Oct 389.00 --
November 29, 2012 2:25PM Germany Unemployment change (000's) Thousands Nov 20.00 --
7:00PM US GDP Qoq (Annualised) % Change 3Q S 2.00 --
Source: Bloomberg, Angel Research
November 07, 2012
Market Outlook
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7/31/2019 Market Outlook 7-11-12
13/21
Ma rket StrategyNovember 07, 2012
www.angelbroking.com
Macro wa tch
Exhibit 1 :Q uarterly G D P trends
3. 5
5. 7
9 .0
7. 5
8. 5
7. 68. 2
9. 2
8. 0
6. 76. 1
5. 3 5. 5
3. 0
4. 0
5. 0
6. 0
7. 0
8. 0
9. 0
10.0
4Q
FY09
1Q
FY10
2Q
FY10
3Q
FY10
4Q
FY10
1Q
FY11
2Q
FY11
3Q
FY11
4Q
FY11
1Q
FY12
2Q
FY12
3Q
FY12
4Q
FY12
1Q
FY13
(%)
Source: CSO, Ang el Research
Exhibit 2 :IIP trends
2. 5
(5.0)
6. 0
2 .7
1. 0
4. 3
(2.8)
(1.3)
2. 5
(1.8)
(0.2)
2. 7
(6.0)
(4.0)
(2.0)
-
2. 0
4. 0
6. 0
8. 0
Sep
-11
O
ct-11
Nov
-11
Dec
-11
Jan
-12
Fe
b-
12
M
ar
-12
Apr
-12
M
ay
-12
Jun
-12
Ju
l-12
Aug
-12
(%)
Source: M O SPI, Ang el Research
Exhibit 3 :M onthly WPI inflation trends
9. 9 9. 5
7. 76. 9
7. 4 7. 7 7. 5 7. 6 7. 6 7. 5 7. 67. 8
0. 0
2. 0
4. 0
6. 0
8. 0
10.0
12.0
O
ct-11
Nov
-11
Dec
-11
Jan
-12
Fe
b-
12
M
ar-
12
Apr-
12
M
ay
-12
Jun
-12
Ju
l-12
Aug
-12
Sep
-12
(%)
Source: M O SPI, Ang el Research
Exhibit 4 :M a nufacturing a nd services PM I
48.0
50.0
52.0
54.0
56.0
58.0
60.0
Sep
-11
O
ct-11
Nov
-11
Dec
-11
Jan
-12
Fe
b-1
2
M
ar
-12
Apr-
12
M
ay
-12
Jun
-12
Ju
l-12
Aug
-12
Sep
-12
M fg. PM I Services PM I
Source: Ma rket, Angel Research; N ote: Level above 50 indicates expansion
Exhibit 5 :Expo rts an d impo rts growth trends
(30.0)
(15.0)
0. 0
15.0
30.0
45.0
O
ct-11
Nov
-11
Dec
-11
Jan
-12
Fe
b-1
2
M
ar-
12
Apr-
12
M
ay
-12
Jun
-12
Ju
l-12
Aug
-12
Sep
-12
Exp orts yo y growth Im ports yo y growth( %)
Source: Bloomberg, Angel Research
Exhibit 6 :Key policy rates
8.00
7.00
4.25
4.00
5.00
6.00
7.00
8.00
9.00
Nov
-11
Dec
-11
Jan
-12
Fe
b-1
2
M
ar-
12
Apr-
12
M
ay
-12
Jun
-12
Ju
l-12
Aug
-12
Sep
-12
O
ct-12
Repo rate Reverse Repo rate C RR(%)
Source: RBI, Angel Research
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7/31/2019 Market Outlook 7-11-12
14/21
Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM(%) EPS () PER(x) P/BV(x) RoE(%) EV/Sales(x)
( ) Price ( ) ( cr ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E
Agri / Agri Chemical
Rallis Neutral 143 - 2,780 1,466 1,686 14.8 14.8 7.0 8.1 20.4 17.7 4.3 3.7 22.6 22.5 2.0 1.7
United Phosphorus Buy 119 170 5,476 8,421 9,263 16.5 16.5 15.0 17.0 7.9 7.0 1.2 1.0 15.6 15.5 0.8 0.7
Auto & Auto Ancillary
Amara Raja Batteries Neutral 258 - 4,412 2,844 3,275 15.4 15.6 15.9 18.8 16.3 13.7 4.2 3.3 28.9 26.9 1.3 1.1
Apollo Tyres Buy 85 103 4,277 13,755 15,389 11.3 11.3 12.8 15.1 6.6 5.6 1.3 1.0 20.6 20.3 0.5 0.4
Ashok Leyland Buy 24 30 6,465 14,920 16,850 9.0 9.3 2.2 2.8 11.2 8.8 2.0 1.8 13.3 15.6 0.5 0.5
Automotive Axle# Accumulate 370 430 560 993 1,140 11.6 11.5 36.9 43.0 10.0 8.6 2.0 1.7 21.2 21.3 0.6 0.5Bajaj Auto Neutral 1,849 - 53,505 21,121 23,642 18.4 18.5 108.7 122.6 17.0 15.1 7.1 5.7 46.2 41.6 2.2 1.9
Bharat Forge Buy 267 324 6,213 6,754 7,565 15.5 15.7 18.8 23.2 14.2 11.5 2.5 2.1 18.5 19.7 1.1 0.9
Bosch India* Neutral 8,888 - 27,907 8,776 10,276 16.6 18.0 331.9 417.7 26.8 21.3 5.0 4.2 18.7 19.5 2.8 2.4
CEAT Buy 107 163 366 4,989 5,634 8.2 8.5 27.1 40.8 3.9 2.6 0.5 0.4 13.2 17.2 0.3 0.2
Exide Industries Accumulate 139 155 11,781 6,229 7,200 14.8 15.8 7.2 9.0 19.3 15.5 3.4 2.9 18.5 19.9 1.6 1.4
FAG Bearings* Neutral 1,715 - 2,850 1,489 1,750 16.5 17.5 103.3 126.9 16.6 13.5 3.2 2.7 21.3 21.6 1.7 1.4
Hero Motocorp Neutral 1,935 - 38,648 24,743 27,996 14.8 15.2 118.2 130.4 16.4 14.8 7.0 5.6 48.3 41.9 1.3 1.1
JK Tyre Buy 116 165 477 7,517 8,329 6.6 6.6 37.2 41.3 3.1 2.8 0.6 0.5 18.8 17.8 0.3 0.3
Mahindra and MahindraAccumulate 914 986 56,142 40,035 46,272 11.5 11.6 54.7 62.8 16.7 14.6 3.7 3.1 24.3 23.4 1.2 1.0
Maruti Neutral 1,455 - 42,023 42,019 50,246 7.3 8.6 66.1 94.4 22.0 15.4 2.5 2.2 11.9 15.1 0.8 0.7
Motherson Sumi Neutral 156 - 9,191 24,285 27,317 6.7 7.2 8.1 10.6 19.4 14.8 4.1 3.3 22.9 24.7 0.5 0.5
Subros Accumulate 32 34 191 1,230 1,378 8.8 8.6 4.5 5.7 7.1 5.6 0.7 0.6 9.8 11.8 0.4 0.4
Tata Motors Buy 267 316 71,118 195,096 219,428 12.8 13.0 39.0 44.9 6.9 5.9 2.0 1.5 32.6 28.8 0.4 0.4
TVS Motor Buy 38 45 1,827 7,466 8,290 6.2 6.3 4.8 5.6 8.0 6.9 1.4 1.2 18.2 18.7 0.2 0.2
Capital Goods
ABB* Sell 728 593 15,431 8,760 10,023 6.2 8.7 14.5 24.7 50.4 29.5 5.5 4.8 11.6 17.6 1.7 1.5BGR Energy Neutral 269 - 1,940 3,669 4,561 11.0 11.0 24.7 29.6 10.9 9.1 1.6 1.5 15.3 16.7 1.0 1.0
BHEL Neutral 232 - 56,894 47,801 43,757 18.5 18.0 24.6 21.8 9.5 10.7 2.8 2.4 33.5 24.5 1.0 1.2
Blue Star Buy 193 249 1,739 2,763 2,948 3.2 5.6 3.5 9.1 56.0 21.2 4.2 3.7 7.7 18.4 0.8 0.7
Crompton Greaves Buy 111 145 7,124 12,370 14,277 5.2 7.3 4.0 7.8 27.8 14.2 1.9 1.7 6.9 12.6 0.7 0.6
Jyoti Structures Buy 43 54 357 2,622 2,744 10.7 10.5 9.6 12.2 4.5 3.6 0.5 0.4 10.8 12.3 0.4 0.3
KEC International Buy 62 73 1,594 6,858 7,431 7.1 7.5 8.3 9.8 7.5 6.4 1.3 1.1 25.1 24.0 0.4 0.3
LMW Reduce 2,125 1,992 2,394 2,369 2,727 11.7 11.7 143.4 166.0 14.8 12.8 2.5 2.3 17.4 18.4 0.5 0.4
Thermax Neutral 574 - 6,838 5,514 5,559 8.9 10.2 26.9 30.3 21.4 19.0 3.7 3.2 18.4 18.2 1.1 1.1
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Market Outlook
Stock Watch
November 07, 2012
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7/31/2019 Market Outlook 7-11-12
15/21
Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM(%) EPS () PER(x) P/BV(x) RoE(%) EV/Sales(x)
( ) Price ( ) ( cr ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E
Cement
ACC Neutral 1,471 - 27,613 11,085 12,415 21.6 21.4 79.4 83.1 18.5 17.7 3.6 3.2 20.1 19.2 2.1 1.8
Ambuja Cements Neutral 215 - 33,104 10,272 11,884 26.4 26.1 11.5 12.9 18.8 16.7 4.1 3.7 20.8 21.1 2.7 2.2
India Cements Neutral 97 - 2,967 4,354 4,929 18.6 18.7 9.8 12.3 9.8 7.9 0.8 0.8 8.6 10.2 1.1 1.0
J K Lakshmi Cements Buy 127 143 1,552 2,082 2,423 22.9 23.1 20.8 22.5 6.1 5.7 1.1 0.9 18.4 17.4 0.9 1.1
Madras Cements Neutral 213 - 5,057 3,608 3,928 27.6 27.0 15.7 18.3 13.5 11.6 2.1 1.8 16.9 17.0 2.0 1.7
Shree Cements^ Neutral 4,324 - 15,063 5,701 6,210 29.7 28.1 240.7 260.7 18.0 16.6 4.4 3.6 27.1 23.6 2.0 1.6
UltraTech Cement Neutral 2,020 - 55,367 21,368 24,043 22.5 23.5 103.5 121.4 19.5 16.6 3.6 3.1 20.2 20.1 2.5 2.4Construction
Ashoka Buildcon Buy 212 304 1,116 2,034 2,315 22.4 22.4 27.1 31.7 7.8 6.7 1.0 0.8 13.1 13.4 1.8 2.1
Consolidated Co Neutral 13 - 241 2,262 2,522 6.7 7.5 1.5 2.7 8.8 4.9 0.4 0.4 4.4 7.5 0.4 0.4
Hind. Const. Neutral 17 - 1,034 4,239 4,522 9.9 11.2 (2.3) (1.0) (7.6) (17.7) 0.9 1.1 (11.4) (5.6) 1.2 1.2
IRB Infra Buy 123 164 4,073 3,843 4,212 43.1 43.6 16.8 17.8 7.3 6.9 1.3 1.1 18.3 17.0 3.2 3.4
ITNL Buy 189 232 3,673 6,840 7,767 26.4 26.1 24.4 30.3 7.7 6.3 1.2 1.0 16.0 16.2 2.7 2.9
IVRCL Infra Buy 42 51 1,287 5,510 6,722 8.8 9.0 2.5 4.6 16.6 9.2 0.6 0.5 3.4 5.8 0.7 0.7
Jaiprakash Asso. Neutral 89 - 18,851 15,259 17,502 25.7 24.7 4.0 4.8 22.1 18.6 1.7 1.6 8.5 9.3 2.6 2.2
Larsen & Toubro Neutral 1,665 - 102,212 60,556 69,167 11.2 11.6 73.8 85.5 22.6 19.5 3.6 3.1 13.5 14.1 1.9 1.6
Madhucon Proj Buy 31 56 225 2,206 2,502 10.7 10.7 4.6 4.7 6.6 6.5 0.3 0.3 5.2 5.0 0.7 0.7
Nagarjuna Const. Neutral 45 - 1,160 5,804 6,513 8.0 8.6 3.0 3.5 14.9 12.9 0.5 0.5 3.2 3.6 0.6 0.7
Patel Engg. Neutral 78 - 543 3,609 3,836 13.1 13.1 14.0 14.6 5.5 5.3 0.3 0.3 6.3 6.1 1.0 1.0
Punj Lloyd Neutral 53 - 1,752 11,892 13,116 8.9 8.9 1.7 3.1 31.1 17.1 0.6 0.6 1.9 3.4 0.6 0.5
Sadbhav Engg. Buy 141 182 2,124 2,506 3,147 10.3 10.7 7.5 10.4 18.7 13.5 2.3 2.0 13.5 16.0 1.0 0.9
Simplex Infra Buy 200 265 987 6,732 7,837 8.1 8.4 23.4 29.4 8.5 6.8 0.8 0.7 9.2 10.6 0.5 0.5
Financials
Allahabad Bank Neutral 137 - 6,833 6,944 7,884 3.0 3.1 35.5 37.0 3.9 3.7 0.6 0.6 17.2 15.7 - -
Andhra Bank Reduce 105 97 5,856 4,929 5,633 3.1 3.1 23.7 24.5 4.4 4.3 0.7 0.7 16.6 15.3 - -
Axis Bank Buy 1,221 1,476 52,075 15,686 18,687 3.1 3.2 116.8 138.0 10.5 8.8 1.9 1.7 20.0 20.2 - -
Bank of Baroda Accumulate 753 817 29,489 15,436 18,208 2.5 2.6 111.8 137.4 6.7 5.5 1.0 0.9 15.8 17.0 - -
Bank of India Neutral 279 - 16,008 12,491 14,883 2.2 2.4 43.8 63.7 6.4 4.4 0.8 0.7 12.1 15.8 - -
Bank of Maharashtra Neutral 53 - 3,148 3,563 3,876 3.1 3.1 9.7 12.0 5.5 4.4 0.8 0.7 14.6 16.1 - -
Canara Bank Accumulate 419 449 18,577 10,905 12,783 2.1 2.2 74.9 85.1 5.6 4.9 0.8 0.8 15.1 15.3 - -
Central Bank Neutral 73 - 5,381 7,095 8,102 2.5 2.7 15.6 21.0 4.7 3.5 0.8 0.7 12.2 14.7 - -
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Market Outlook
Stock Watch
November 07, 2012
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7/31/2019 Market Outlook 7-11-12
16/21
Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM(%) EPS () PER(x) P/BV(x) RoE(%) EV/Sales(x)
( ) Price ( ) ( cr ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E
Financials
Corporation Bank Accumulate 398 447 5,892 4,886 5,669 2.1 2.2 101.3 101.8 3.9 3.9 0.7 0.6 17.0 15.1 - -
Dena Bank Neutral 111 - 3,875 3,147 3,495 2.8 2.9 24.8 24.4 4.5 4.5 0.8 0.7 18.7 15.9 - -
Federal Bank Neutral 477 - 8,162 2,617 2,968 3.3 3.2 45.9 51.7 10.4 9.2 1.3 1.2 13.1 13.3 - -
HDFC Neutral 782 - 120,536 7,336 8,802 3.5 3.5 31.5 37.8 24.8 20.7 5.0 4.4 34.8 32.1 - -
HDFC Bank Neutral 640 - 151,223 21,696 26,811 4.4 4.5 28.7 36.0 22.3 17.8 4.3 3.6 20.7 22.0 - -
ICICI Bank Buy 1,082 1,270 124,367 22,271 26,690 3.0 3.0 69.2 83.1 15.6 13.0 1.9 1.7 14.2 15.7 - -
IDBI Bank Accumulate 98 103 12,554 7,684 9,264 1.8 2.1 15.6 22.0 6.3 4.5 0.7 0.6 10.9 13.9 - -Indian Bank Accumulate 166 181 7,149 5,874 6,551 3.2 3.2 40.6 41.8 4.1 4.0 0.7 0.6 18.1 16.4 - -
IOB Neutral 73 - 5,794 7,050 8,313 2.3 2.5 12.3 19.9 5.9 3.7 0.5 0.5 8.8 13.1 - -
J & K Bank Neutral 1,310 - 6,349 2,762 2,885 3.6 3.6 226.7 193.0 5.8 6.8 1.3 1.1 24.4 17.7 - -
LIC Housing Finance Buy 254 298 12,803 1,799 2,255 2.3 2.4 20.3 27.3 12.5 9.3 2.0 1.7 16.9 19.7 - -
Oriental Bank Neutral 325 - 9,475 6,277 7,090 2.6 2.7 60.5 65.1 5.4 5.0 0.8 0.7 15.0 14.4 - -
Punjab Natl.Bank Accumulate 757 819 25,681 19,652 22,601 3.2 3.3 135.0 164.3 5.6 4.6 1.0 0.8 16.3 17.3 - -
South Ind.Bank Accumulate 23 25 3,072 1,556 1,750 2.8 2.7 3.5 3.9 6.6 6.0 1.1 1.0 19.1 16.9 - -
St Bk of India Accumulate 2,173 2,353 145,808 63,806 73,435 3.5 3.6 225.7 258.4 9.6 8.4 1.6 1.4 17.7 17.8 - -
Syndicate Bank Neutral 119 - 7,187 6,756 7,783 3.0 3.0 26.3 27.1 4.5 4.4 0.8 0.7 18.3 16.6 - -
UCO Bank Neutral 74 - 4,896 5,411 6,124 2.4 2.5 17.0 16.5 4.3 4.5 0.8 0.8 16.7 14.4 - -
Union Bank Accumulate 218 235 12,007 9,912 11,536 2.8 2.9 40.4 46.7 5.4 4.7 0.9 0.8 16.1 16.4 - -
United Bank Accumulate 65 74 2,336 3,572 4,041 2.8 2.9 17.2 22.1 3.8 2.9 0.5 0.5 14.2 16.2 - -
Vijaya Bank Neutral 54 - 2,688 2,490 2,881 2.1 2.2 9.2 11.4 5.9 4.8 0.7 0.7 11.5 13.0 - -
Yes Bank Buy 421 492 14,989 3,270 4,240 2.8 3.0 34.5 42.2 12.2 10.0 2.6 2.1 23.5 23.5 - -
FMCG
Asian Paints Neutral 4,098 - 39,305 11,198 13,184 16.2 16.2 123.7 146.4 33.1 28.0 11.3 8.9 38.1 35.4 3.3 2.8
Britannia Buy 480 584 5,735 5,835 6,824 5.7 6.0 20.7 25.4 23.2 18.9 9.1 7.0 43.1 41.9 0.9 0.7
Colgate Neutral 1,308 - 17,782 3,018 3,429 20.9 22.2 35.7 42.3 36.6 30.9 33.8 25.2 101.0 93.5 5.6 4.9
Dabur India Neutral 127 - 22,161 6,124 7,101 17.0 16.8 4.5 5.2 28.5 24.3 11.7 9.3 43.2 41.5 3.6 3.0
GlaxoSmith Con* Neutral 3,069 - 12,908 3,124 3,663 17.1 17.6 104.5 123.8 29.4 24.8 9.2 7.3 34.4 32.8 3.8 3.2
Godrej Consumer Neutral 685 - 23,321 6,097 7,233 18.4 18.6 21.9 26.5 31.3 25.9 6.9 5.7 25.5 25.4 4.2 3.5
HUL Neutral 533 - 115,165 25,350 28,974 13.3 13.5 14.7 17.1 36.2 31.2 28.6 20.2 84.5 75.8 4.4 3.8
ITC Neutral 289 - 227,440 29,409 34,060 35.7 36.1 9.3 10.9 31.0 26.5 10.3 8.6 35.8 35.3 7.3 6.2
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Market Outlook
Stock Watch
November 07, 2012
-
7/31/2019 Market Outlook 7-11-12
17/21
Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM(%) EPS () PER(x) P/BV(x) RoE(%) EV/Sales(x)
( ) Price ( ) ( cr ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E
FMCG
Marico Neutral 209 - 13,452 4,840 5,643 13.1 13.1 6.8 8.5 30.8 24.7 8.5 6.5 31.4 29.7 2.8 2.3
Nestle* Neutral 4,860 - 46,859 8,610 10,174 20.9 21.2 114.8 139.8 42.3 34.8 25.6 17.8 71.2 60.3 5.4 4.5
Tata Global Neutral 158 - 9,761 7,207 7,927 9.7 10.0 6.6 7.8 23.9 20.2 2.4 2.3 8.6 9.5 1.3 1.1
IT
HCL Tech^ Accumulate 609 648 42,279 24,214 26,772 19.5 18.1 44.0 48.0 13.8 12.7 3.3 2.8 24.0 22.0 1.7 1.5
Hexaware* Buy 115 135 3,405 1,944 2,159 21.8 21.1 11.4 12.2 10.1 9.4 2.6 2.2 26.4 24.1 1.4 1.2
Infosys Accumulate 2,384 2,573 136,891 39,174 41,580 29.5 30.4 159.2 171.6 15.0 13.9 3.6 3.2 24.1 23.1 2.9 2.7Infotech Enterprises Neutral 201 - 2,241 1,886 2,032 17.9 17.3 18.7 20.2 10.8 10.0 1.6 1.4 14.9 14.0 0.8 0.7
KPIT Cummins Accumulate 122 132 2,180 2,195 2,317 15.5 15.0 10.7 12.1 11.4 10.1 2.4 2.0 21.0 19.8 1.0 0.9
Mahindra Satyam Accumulate 111 115 13,022 7,597 8,141 20.0 18.8 9.7 10.4 11.5 10.6 3.2 2.4 27.5 22.9 1.3 1.1
Mindtree Accumulate 675 747 2,766 2,324 2,437 20.0 17.7 73.3 74.7 9.2 9.0 2.2 1.8 24.1 19.7 0.9 0.8
Mphasis& Neutral 392 - 8,235 5,700 5,993 18.0 16.9 37.0 37.3 10.6 10.5 1.5 1.3 14.3 12.6 1.0 0.8
NIIT Accumulate 34 36 553 1,034 1,146 9.9 11.0 5.2 6.4 6.4 5.2 0.8 0.8 12.8 14.3 0.4 0.3
Persistent Neutral 482 - 1,926 1,261 1,352 26.4 24.7 48.2 54.0 10.0 8.9 1.9 1.6 19.0 17.9 1.2 1.0
TCS Accumulate 1,321 1,410 258,549 61,053 67,313 28.7 29.1 69.7 76.2 19.0 17.3 6.2 5.1 32.6 29.1 4.1 3.6
Tech Mahindra Accumulate 963 1,046 12,294 6,603 7,196 18.2 17.1 92.7 99.6 10.4 9.7 2.5 2.0 23.6 20.5 1.9 1.7
Wipro Buy 366 421 90,103 43,219 47,241 20.0 20.0 26.1 28.1 14.0 13.0 2.7 2.3 19.3 17.9 1.7 1.5
Media
D B Corp Buy 212 259 3,878 1,581 1,784 23.3 25.0 11.6 14.4 18.3 14.7 3.5 3.0 21.0 22.3 2.3 2.0
HT Media Accumulate 98 113 2,291 2,111 2,272 15.0 15.2 7.4 8.3 13.2 11.8 1.4 1.3 11.3 11.4 0.8 0.7
Jagran Prakashan Buy 102 117 3,229 1,503 1,681 23.1 23.1 6.4 7.3 16.0 14.1 4.0 3.5 25.8 26.5 2.3 2.0
PVR Neutral 234 - 609 625 732 17.4 17.1 13.3 15.6 17.6 15.0 1.9 1.7 13.2 13.8 1.4 1.1
Sun TV Network Neutral 343 - 13,523 1,981 2,239 77.0 76.7 18.6 21.3 18.5 16.1 4.7 4.1 27.1 27.5 6.3 5.4Metals & Mining
Bhushan Steel Neutral 491 - 10,423 11,979 14,584 31.6 31.0 49.2 61.4 10.0 8.0 1.3 1.1 14.1 15.2 2.9 2.4
Coal India Accumulate 351 385 221,862 69,808 75,550 27.4 27.4 26.0 28.3 13.5 12.4 3.9 3.2 32.5 28.1 2.2 1.9
Electrosteel Castings Accumulate 28 29 983 1,984 2,074 10.6 11.6 0.8 2.0 34.0 14.0 0.5 0.2 1.7 4.1 0.7 0.6
Hind. Zinc Accumulate 140 145 59,007 12,446 13,538 52.3 52.9 15.0 16.4 9.3 8.5 1.8 1.6 21.4 19.7 2.8 2.1
Hindalco Neutral 113 - 21,549 84,855 92,446 8.7 9.3 13.2 16.2 8.5 6.9 0.6 0.6 7.8 8.9 0.7 0.6
JSW Steel Neutral 749 - 16,704 39,586 41,459 17.6 17.0 78.7 90.1 9.5 8.3 0.9 0.9 10.2 10.7 0.8 0.8
MOIL Accumulate 248 271 4,169 918 993 50.7 50.9 24.5 26.1 10.1 9.5 1.5 1.4 16.0 15.5 2.2 1.9
Monnet Ispat Buy 289 379 1,862 2,511 3,303 23.8 26.0 46.3 57.3 6.3 5.1 0.7 0.6 12.4 13.7 1.7 1.2
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November 07, 2012
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7/31/2019 Market Outlook 7-11-12
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Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM(%) EPS () PER(x) P/BV(x) RoE(%) EV/Sales(x)
( ) Price ( ) ( cr ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E
Metals & Mining
Nalco Reduce 46 44 11,958 6,898 7,841 9.9 14.7 2.0 3.2 23.4 14.6 1.0 1.0 4.3 6.8 1.3 1.2
NMDC Buy 186 214 73,803 12,934 14,266 79.4 80.1 21.1 23.4 8.8 8.0 2.4 1.9 29.6 26.5 3.6 3.0
SAIL Neutral 82 - 34,036 47,252 60,351 14.2 14.8 9.6 11.7 8.6 7.0 0.8 0.7 9.4 10.6 1.2 1.0
Sesa Goa Neutral 175 - 15,244 4,551 6,640 32.8 34.4 33.7 39.3 5.2 4.5 0.9 0.8 18.3 18.3 4.0 2.7
Sterlite Inds Accumulate 102 110 34,195 43,185 45,442 23.3 23.7 16.8 17.9 6.1 5.7 0.7 0.6 11.6 11.2 0.8 0.7
Tata Steel Buy 399 481 38,722 145,799 150,431 10.3 11.2 48.6 63.3 8.2 6.3 0.8 0.7 10.5 12.4 0.5 0.5
Sarda Buy 144 153 515 1,442 1,494 17.6 17.3 27.2 28.7 5.3 5.0 0.6 0.5 11.5 11.0 0.7 0.6Prakash Industries Buy 53 73 718 2,694 2,906 14.6 16.6 16.4 20.8 3.3 2.6 0.3 0.3 11.4 12.8 0.5 0.4
Godawari Power andIspat
Buy 122 161 388 2,341 2,425 15.6 17.3 33.3 43.2 3.7 2.8 0.4 0.4 13.2 14.4 0.5 0.5
Oil & Gas
Cairn India Accumulate 330 382 62,964 17,567 17,643 76.2 72.3 61.1 56.8 5.4 5.8 1.1 1.0 22.0 17.5 2.8 2.4
GAIL Neutral 363 - 46,052 46,652 54,142 15.7 15.7 34.0 35.3 10.7 10.3 1.9 1.6 18.5 16.8 0.7 0.6
ONGC Buy 267 312 228,474 147,139 154,821 33.9 33.7 30.7 32.3 8.7 8.3 1.5 1.4 18.3 17.2 1.3 1.2
Reliance Industries Neutral 805 - 263,651 362,700 380,031 7.9 8.0 60.0 63.3 13.4 12.7 1.3 1.2 11.1 10.6 0.7 0.7
Gujarat Gas* Neutral 300 - 3,843 3,228 3,819 11.5 11.3 19.2 22.1 15.6 13.6 4.2 3.7 28.7 29.0 1.1 0.9
Indraprastha Gas Neutral 261 - 3,648 3,040 3,135 24.3 26.7 24.8 27.9 10.5 9.4 2.4 2.0 25.5 23.6 1.2 1.0
Petronet LNG Accumulate 171 183 12,803 30,077 33,570 6.6 6.3 15.1 15.3 11.3 11.2 2.9 2.4 28.4 23.1 0.5 0.4
Gujarat State PetronetLtd.
Neutral 75 - 4,237 1,041 939 91.8 91.9 8.5 7.4 8.9 10.2 1.5 1.4 18.1 14.0 4.9 5.4
Pharmaceuticals
Alembic Pharma Buy 67 91 1,271 1,624 1,855 14.2 15.6 6.6 9.1 10.2 7.4 2.6 2.0 27.9 29.9 0.9 0.8
Aurobindo Pharma #VALUE! 176 5,109 5,243 5,767 14.6 14.6 11.8 12.6 14.9 13.9 1.9 1.6 17.9 16.4 1.4 1.3
Aventis* Neutral 2,216 - 5,103 1,482 1,682 15.5 15.5 95.1 104.4 23.3 21.2 4.1 3.2 18.6 17.0 3.3 2.8
Cadila Healthcare Accumulate 887 953 18,154 6,148 7,386 18.6 19.6 36.0 46.1 24.6 19.2 5.8 4.7 25.8 26.8 3.1 2.5
Cipla Accumulate 396 419 31,824 8,151 9,130 25.0 24.0 19.5 20.9 20.3 19.0 3.5 3.0 18.8 17.2 3.5 3.0
Dr Reddy's Neutral 1,786 - 30,318 10,696 11,662 20.7 21.0 83.7 92.9 21.3 19.2 4.4 3.7 22.4 20.8 3.1 2.7
Dishman Pharma Buy 99 145 798 1,280 1,536 20.2 20.2 10.4 14.5 9.5 6.8 0.8 0.7 8.7 11.0 1.3 1.1
GSK Pharma* Neutral 1,999 - 16,934 2,651 2,993 31.7 31.2 76.0 82.4 26.3 24.3 7.6 6.8 20.1 26.3 5.6 4.8
Indoco Remedies Buy 65 89 598 685 837 15.2 15.2 7.4 8.9 8.8 7.3 1.3 1.2 16.4 17.0 1.0 0.9
Ipca labs Neutral 462 - 5,826 2,850 3,474 21.0 21.0 29.9 37.3 15.5 12.4 3.7 2.9 26.7 26.4 2.2 1.8
Lupin Accumulate 587 652 26,244 8,426 10,082 19.7 20.0 26.3 31.3 22.3 18.8 5.2 4.2 26.0 24.7 3.2 2.6
Orchid Chemicals Neutral 104 - 735 1,667 1,835 13.9 13.9 11.4 13.3 9.2 7.8 0.6 0.6 6.6 7.3 0.9 0.8
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November 07, 2012
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7/31/2019 Market Outlook 7-11-12
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Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM(%) EPS () PER(x) P/BV(x) RoE(%) EV/Sales(x)
( ) Price ( ) ( cr ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E
Pharmaceuticals
Ranbaxy* Neutral 547 - 23,122 12,046 11,980 18.0 15.8 31.3 29.8 17.5 18.4 6.0 4.8 39.1 28.9 1.9 1.9
Sun Pharma Neutral 698 - 72,182 9,752 12,134 41.6 41.6 26.0 28.2 26.9 24.8 5.0 4.3 20.3 18.8 6.7 5.2
Power
CESC Neutral 281 - 3,508 5,218 5,644 24.2 23.8 44.6 47.6 6.3 5.9 0.7 0.6 11.0 10.6 1.5 1.5
GIPCL Accumulate 68 77 1,035 1,557 1,573 29.3 28.7 10.8 11.0 6.4 6.2 0.7 0.6 10.8 10.2 1.1 1.0
NTPC Neutral 168 - 138,854 74,111 85,789 22.7 23.1 12.1 13.7 13.9 12.3 1.7 1.6 12.6 13.2 2.5 2.3
Real EstateAnant Raj Neutral 85 - 2,499 657 875 52.0 56.1 8.4 12.7 10.1 6.7 0.6 0.6 6.3 8.9 4.8 3.6
DLF Neutral 206 - 35,059 9,878 12,033 44.7 46.1 9.6 13.4 21.6 15.4 1.4 1.3 6.4 8.7 6.0 5.0
HDIL Buy 106 115 4,437 2,441 3,344 55.1 48.2 22.7 26.6 4.7 4.0 0.4 0.4 8.8 9.4 3.6 2.7
MLIFE Neutral 415 - 1,695 813 901 26.2 26.6 32.0 37.1 13.0 11.2 1.4 1.2 10.4 11.0 2.4 2.1
Telecom
Bharti Airtel Neutral 274 - 103,862 79,147 86,745 31.1 32.5 9.9 15.1 27.6 18.2 1.9 1.8 7.0 9.7 2.0 1.7
Idea Cellular Neutral 85 - 28,160 22,234 24,161 26.9 27.7 3.3 4.9 25.7 17.2 2.0 1.8 7.7 10.3 1.7 1.5
Rcom Neutral 56 - 11,641 20,650 20,935 32.3 33.0 4.2 5.8 13.3 9.8 0.3 0.3 2.3 3.1 2.2 2.0
zOthers
Abbott India Neutral 1,494 - 3,175 1,602 1,833 10.4 11.8 54.7 71.7 27.3 20.8 5.2 4.4 20.0 22.7 1.7 1.4
Bajaj Electricals Accumulate 197 217 1,964 3,497 3,968 6.6 7.6 9.8 15.5 20.1 12.7 2.6 2.2 12.7 17.4 0.6 0.5
Cera Sanitaryware Accumulate 375 411 475 427 528 15.7 14.6 30.0 34.0 12.5 11.0 2.7 2.2 24.6 22.5 1.2 1.0
Cravatex Buy 450 682 116 289 340 5.2 5.9 41.0 57.0 11.0 7.9 2.8 2.1 25.2 26.5 0.5 0.4
CRISIL Neutral 933 - 6,554 982 1,136 34.3 34.3 34.3 40.0 27.2 23.3 12.3 9.8 50.9 46.9 6.3 5.2
Finolex Cables Buy 43 61 657 2,334 2,687 6.2 6.5 8.0 10.0 5.4 4.3 0.7 0.6 13.0 14.9 0.2 0.2
Force Motors Accumulate 478 537 622 2,318 2,700 5.0 5.7 45.0 67.0 10.6 7.1 0.5 0.5 5.0 7.0 0.2 0.2Goodyear India Neutral 330 - 761 1,543 1,654 6.5 7.3 24.8 31.1 13.3 10.6 2.2 1.9 17.1 19.0 0.3 0.2
Disa India Buy 2,701 3,353 408 176 203 22.7 22.6 182.5 209.6 14.8 12.9 7.7 6.1 51.8 47.1 2.2 1.8
Greenply Industries Neutral 293 - 708 1,925 2,235 10.6 10.9 29.6 44.1 9.9 6.7 1.6 1.3 16.8 21.0 0.7 0.5
Hitachi Neutral 135 - 309 868 977 3.9 6.6 2.7 10.9 49.1 12.4 1.8 1.6 3.7 13.6 0.4 0.4
Honeywell Automation* Accumulate 2,602 2,842 2,300 1,745 1,993 4.0 5.3 59.5 90.4 43.7 28.8 3.3 2.9 8.1 11.3 1.3 1.1
Styrolution ABS India* Accumulate 645 744 1,134 1,059 1,116 8.5 9.5 36.0 42.0 17.9 15.4 2.6 2.3 15.4 16.0 1.1 1.0
ITD Cementation Neutral 249 - 287 1,323 1,455 12.4 12.4 23.2 27.7 10.8 9.0 0.7 0.7 6.8 7.6 0.7 0.6
Jyothy Laboratories Neutral 173 - 2,796 1,228 1,443 9.0 10.9 3.9 6.4 44.6 27.2 4.4 4.1 10.1 15.6 2.8 2.4
MCX Neutral 1,435 - 7,316 553 624 65.3 66.3 62.5 72.0 23.0 19.9 6.3 5.5 27.5 27.4 10.1 8.4
MRF Buy 10,307 12,884 4,371 11,804 12,727 10.4 10.5 1,289.9 1,431.3 8.0 7.2 1.5 1.3 21.3 19.4 0.5 0.5
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Market Outlook
Stock Watch
November 07, 2012
-
7/31/2019 Market Outlook 7-11-12
20/21
Company Name Reco CMP Target Mkt Cap Sales ( cr ) OPM(%) EPS () PER(x) P/BV(x) RoE(%) EV/Sales(x)
( ) Price ( ) ( cr ) FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E FY13E FY14E
zOthers
Page Industries Neutral 3,333 - 3,717 887 1,108 18.3 18.6 95.0 120.9 35.1 27.6 18.3 14.9 57.4 59.5 4.2 3.4
Relaxo Footwears Reduce 803 821 964 1,019 1,208 12.3 13.0 51.0 68.4 15.8 11.7 4.2 3.1 30.3 30.2 1.2 1.0
Sintex Industries Buy 65 79 1,768 4,751 5,189 16.3 16.6 13.6 15.8 4.8 4.1 0.6 0.6 12.9 13.2 0.7 0.6
Siyaram Silk Mills Buy 301 366 282 1,043 1,149 12.3 12.9 65.7 73.3 4.6 4.1 0.9 0.7 21.0 19.6 0.5 0.5
S. Kumars Nationwide Neutral 14 - 422 7,134 7,985 19.7 19.4 12.2 14.1 1.2 1.0 0.1 0.1 11.3 11.5 0.6 0.6
SpiceJet Buy 36 43 1,732 5,720 6,599 5.3 6.8 3.6 5.4 9.9 6.7 14.4 4.6 - - 0.4 0.3
TAJ GVK Buy 73 108 459 300 319 35.8 36.2 7.9 9.1 9.3 8.1 1.2 1.1 13.9 14.4 1.8 1.6Tata Sponge Iron Buy 327 384 504 750 803 18.6 18.4 65.4 69.1 5.0 4.7 0.8 0.7 16.5 15.3 0.3 0.2
TVS Srichakra Accumulate 302 335 231 1,476 1,643 7.0 8.2 32.6 55.9 9.3 5.4 1.5 1.2 16.8 24.8 0.4 0.3
United Spirits Neutral 1,244 - 16,269 10,289 11,421 13.5 14.3 31.0 42.9 40.1 29.0 3.1 2.8 8.1 10.3 2.2 2.0
Vesuvius India Neutral 343 - 696 560 611 16.1 17.0 24.7 28.8 13.9 11.9 2.1 1.8 15.8 16.2 1.1 1.0
Source: Company, Angel Research; Note: *December year end; #September year end; &October year end; Price as on November 06, 2012
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Market OutlookNovember 07, 2012